What Is a Balanced Exchange In SFR Investing?
A balanced exchange ensures 100% tax deferral by acquiring replacement property of equal or greater value.
A Balanced Exchange is a strategy ensuring 100% tax deferral on capital gains and depreciation recapture. It requires acquiring replacement property valued at or above the relinquished property, reinvesting all proceeds, and matching or exceeding existing debt obligations through new financing or cash contributions.
The information in this article is for educational purposes only and does not constitute tax, legal, financial, or investment advice. Consult a qualified professional before making investment decisions.